NOAA's $107.7M AWIPS O&M Contract Awarded to Raytheon Company Under Full and Open Competition

Contract Overview

Contract Amount: $107,664,452 ($107.7M)

Contractor: Raytheon Company

Awarding Agency: Department of Commerce

Start Date: 2017-09-01

End Date: 2024-07-31

Contract Duration: 2,525 days

Daily Burn Rate: $42.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) OPERATIONS AND MAINTENANCE (O&M), O&M INFORMATION TECHNOLOGY SECURITY SERVICES FOR THE NATIONAL WEATHER SERVICE.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $107.7 million to RAYTHEON COMPANY for work described as: IGF::CT::IGF ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) OPERATIONS AND MAINTENANCE (O&M), O&M INFORMATION TECHNOLOGY SECURITY SERVICES FOR THE NATIONAL WEATHER SERVICE. Key points: 1. The contract is for IT security services for the National Weather Service's Advanced Weather Interactive Processing System (AWIPS). 2. Raytheon Company is the incumbent contractor, suggesting potential for continuity but also a need to monitor future competition. 3. The contract's duration is over 7 years, indicating a significant long-term investment in weather data processing. 4. The primary sector is Information Technology, specifically custom computer programming services.

Value Assessment

Rating: good

The contract value of $107.7M over approximately 7 years appears reasonable for complex IT operations and maintenance, especially for critical national infrastructure like weather systems. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery and ensuring the government receives competitive pricing. This method allows all eligible vendors to bid, fostering a competitive environment.

Taxpayer Impact: The competitive award process likely ensures taxpayer funds are used efficiently for essential weather services.

Public Impact

Ensures continued operation and security of the National Weather Service's critical weather forecasting and data processing systems. Supports the accuracy and timeliness of weather predictions, impacting public safety and various economic sectors. Provides essential IT infrastructure for meteorological research and development. Maintains the technological backbone for disaster preparedness and response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may limit future opportunities for new vendors.
Reliance on a single vendor for O&M could pose risks if performance issues arise.
Potential for scope creep over the contract's extended period.

Positive Signals

Awarded under full and open competition.
Critical service for national weather forecasting and public safety.
Incumbent contractor may bring valuable institutional knowledge.

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Spending benchmarks for similar large-scale IT operations and maintenance contracts for federal agencies can vary widely based on complexity and scope, but this value is substantial for a critical national system.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). While the prime contractor is Raytheon Company, a large business, there may be opportunities for small businesses to participate as subcontractors.

Oversight & Accountability

The contract's long duration necessitates robust oversight to ensure performance standards are met and costs remain justified. Regular performance reviews and audits by NOAA and potentially the Inspector General will be crucial for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Long-term dependency on a single contractor.
Potential for cost overruns if not closely managed.
Cybersecurity risks inherent in critical IT infrastructure.
Need for continuous monitoring of performance and service delivery.
Risk of technological obsolescence if upgrades are not proactively managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $107.7 million to RAYTHEON COMPANY. IGF::CT::IGF ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM (AWIPS) OPERATIONS AND MAINTENANCE (O&M), O&M INFORMATION TECHNOLOGY SECURITY SERVICES FOR THE NATIONAL WEATHER SERVICE.

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $107.7 million.

What is the period of performance?

Start: 2017-09-01. End: 2024-07-31.

What is the specific breakdown of costs for operations versus maintenance versus security services within this contract?

The provided data does not detail the cost breakdown between operations, maintenance, and security services. A more granular analysis would require access to the contract's detailed financial reporting. Understanding this allocation is key to assessing the value proposition for each component of the service.

How will NOAA ensure continued innovation and prevent vendor lock-in with Raytheon over the contract's 7-year term?

NOAA can mitigate vendor lock-in by incorporating performance incentives, clear service level agreements, and potentially phased technology refreshes within the contract. Regular market research and encouraging Raytheon to propose innovative solutions will also be vital to ensure the AWIPS system remains state-of-the-art.

What are the key performance indicators (KPIs) used to measure the effectiveness of these IT security services?

Key performance indicators likely include metrics related to system uptime, response times to security incidents, vulnerability remediation rates, and compliance with federal cybersecurity standards (e.g., NIST). The effectiveness is ultimately measured by the uninterrupted and secure operation of the AWIPS platform.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 22260 PACIFIC BLVD, DULLES, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,664,452

Exercised Options: $107,664,452

Current Obligation: $107,664,452

Actual Outlays: $5,663,560

Subaward Activity

Number of Subawards: 65

Total Subaward Amount: $51,422,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCEA133W17CQ0082

IDV Type: IDC

Timeline